Youth unemployment has been a persistent challenge in the UK. The government’s answer is a multi-layered package called the Youth Guarantee combining direct financial incentives for employers, fully subsidised jobs for the hardest-to-reach young people, and expanded support in every jobcentre across Great Britain. From 30 June 2026, businesses can claim £3,000 for every eligible young person they hire. It’s part of the most ambitious youth employment package in years, and it comes with serious private sector backing.
What is the Youth Jobs Grant?
The Youth Jobs Grant is a straightforward financial incentive. Hire someone aged 18 to 24 who has been on Universal Credit and looking for work for at least six months, and the government pays you £3,000 split across two instalments once the employment is verified by DWP. The first payment of £1,800 arrives at week six of employment, and a second payment of £1,200 follows at week 18. Verification takes place within 10 working days. The application process is straightforward: employers complete a short online form, accept a brief set of terms and conditions, and the eligible young person is identified through a jobcentre.
Young people with health conditions and disabilities are also eligible for the scheme.
The Jobs Guarantee
For young people who have been out of work for 18 months or more, the government is offering something more substantial: a fully funded six-month job. Under the Jobs Guarantee, the government covers 100% of employment costs for up to 25 hours a week at the relevant minimum wage. Participants also receive wraparound support, including pre-employment training in both role-specific and soft skills like confident speaking and time management. The scheme launched as a pilot in April 2026 across six areas: Birmingham and Solihull, the East Midlands, Greater Manchester, Hertfordshire and Essex, Central and East Scotland, and Southwest and Southeast Wales.
Every jobcentre in Great Britain began delivering expanded support for young people from 29 June 2026. At week two, young people receive an Employment and Skills Review with a sharper focus on identifying their skills, followed by weekly appointments to address barriers to work. At week 13, anyone not yet earning or learning receives an in-depth Youth Guarantee Gateway meeting. That triggers four further weeks of intensive help, during which several tailored options are offered : a job, work experience, an apprenticeship, sector-based training, or further learning.
Nearly one million young people are expected to receive this support over the next three years.
Who’s already backing it?
One of the most visible early commitments comes from Merlin Entertainments, the group behind Alton Towers, LEGOLAND Windsor, Chessington World of Adventures and SEA LIFE Aquarium, which has pledged 300 jobs for young people across its UK portfolio over the next three years. Roles will span hospitality, guest experience, technology and marketing, with apprenticeship routes also opening through Merlin’s Engineering Academy. UKHospitality has convened businesses to explore job fairs, apprenticeships and delivery partnerships.
What business groups are saying
Reaction from the business community has been broadly positive. The Federation of Small Businesses noted that nearly half of small employers say financial incentives would encourage them to hire an unemployed person, suggesting the grant could have particular reach among SMEs. The CBI called it “an important part of the puzzle.” The British Chambers of Commerce described it as “an important first step” on youth employment. Youth Employment UK welcomed the measures but noted that lasting impact depends on the quality of the opportunity, the support around the young person, and a genuine commitment to helping them progress, not just the financial incentive alone.
The bigger picture
The Youth Jobs Grant and Jobs Guarantee sit within a £2.5 billion package the government is calling the Youth Guarantee, a commitment to ensure every young person has a clear path into learning or earning. The package aims to help up to 60,000 people aged 18 to 24 take their first steps into work over the next three years. Whether it reaches that target will depend heavily on employer take-up, particularly among small and medium-sized businesses, which make up the vast majority of UK employers and have historically been harder to reach with government-backed employment programmes.
Employers can apply for the Youth Jobs Grant from 30 June 2026 at business.gov.uk.
